Rural vs Urban Unemployment: Latest PLFS Insights for Competitive Exams

Key Insights from May 2024 PLFS Report
Latest Unemployment Trends:
Unemployment Rate (UER) rose to 5.6% (from 5.1% in April) for people aged 15+.
Gender Gap: Female UER surged to 5.8% (↑80 bps), male UER hit 5.6% (↑40 bps).
Rural-Urban Divide: Rural UER rose to 5.1% (↑60 bps); urban UER reached 6.9% (↑40 bps).
Youth Crisis: Rural female unemployment (15-29 age group) spiked to 13% (from 10.7%).

Labour Force Metrics Explained:
Labour Force Participation Rate (LFPR): Fell to 54.8% (↓80 bps).
Male LFPR: 77.2% (↓50 bps)
Female LFPR: 33.2% (↓100 bps)
Worker Population Ratio (WPR): Dropped to 51.7% (↓110 bps).
Rural Shift: Agriculture jobs fell from 45.9% → 43.5%, moving to secondary/services sectors post-rabi harvest.
 
Why This Matters for Exams
This data aligns with UPSC Mains GS-III (Indian Economy, employment, resource mobilization) and Prelims (sustainable development, demographics). Key concepts tested:
Unemployment Rate Calculation: Based on Current Weekly Status (CWS)—tracking work status in the 7 days before the survey.
Role of CMIE: Centre for Monitoring Indian Economy (private body) publishes independent unemployment data.
Reasons for May Spike: Seasonal factors (rabi harvest end), reduced rural agricultural activity, and academic cycles.
 

Sample Exam Q&A
Q: How is India’s monthly unemployment rate calculated under PLFS?
A: Using the Current Weekly Status (CWS) method, surveying work status in the prior 7 days.
Q: What caused the rural unemployment rise in May 2024?
A: End of rabi harvest season reduced agricultural jobs, shifting workers to secondary/services sectors.
Q: Define LFPR and WPR.
A: LFPR = % population working or seeking work. WPR = % of employed persons in the population.
Q: Which group saw the sharpest unemployment rise in May 2024?
A: Rural females aged 15-29 (UER surged to 13% from 10.7%).
Q: Is CMIE a government agency?
A: No. It’s an independent private organization monitoring Indian economic data.